Home / Business and Economy / Mangalam Cement Profit Plummets 44% Amidst Rising Costs
Mangalam Cement Profit Plummets 44% Amidst Rising Costs
10 Aug
Summary
- Net profit fell by 44% to Rs 18.07 crore in Q1 FY27.
- Revenue saw a marginal 0.8% increase year-on-year.
- Operating expenditure increased by 6.7% due to higher inventory costs.
Mangalam Cement, a part of the B.K. Birla group, experienced a substantial decline in its financial performance for the first quarter of fiscal year 2027. The company announced a net profit of Rs 18.07 crore, marking a significant 44% decrease compared to Rs 32.26 crore reported in the same period of fiscal year 2026.
Revenue for the quarter reached Rs 455.22 crore, showing a modest year-on-year increase of 0.8%. However, this growth was overshadowed by a 6.7% rise in total operating expenditure. This increase in expenses was mainly due to higher inventory adjustments, with the firm recording a rise in inventory value to Rs 34.57 crore in the June 2026 quarter, compared to a write-down of Rs 20.20 crore in the prior year's corresponding period.
Consequently, profit before tax for Q1 FY27 stood at Rs 23.64 crore, a 37.9% decrease from the Rs 27.7 crore recorded in Q1 FY26. Mangalam Cement possesses an installed cement capacity of 4.4 MTPA and a clinker capacity of 2.67 MTPA, supported by captive power plants.
